How to Become a Shareholder in a Company

If you own stock in any company then congratulations, you have become a shareholder in the organization. As a shareholder in a company, you now have a couple of choices. You can simply enjoy the knowledge that you have invested your money in a company that you believe will do well. Another option is that you can play a more active role in the company that you own shares in.

Once you become a shareholder in a company, you want to ensure you’re fulfilling your responsibilities and doing everything to make the most of your position. Here

1. Show up to shareholder meetings

Being an involved shareholder means that you are invited to attend shareholder meetings. It is important that you don’t skip these as this is the perfect opportunity to make your voice heard and make an impression on other shareholders. You will also be able to hear about the previous period’s performance and any new company initiatives.

As someone who has put money into the company you will no doubt want to know what the plans are for the foreseeable future. This will help you to establish whether this company has a long term future that you are happy to remain invested in.

2. Speak up as a shareholder

Another benefit of regularly attending shareholder meetings is that you will be able to assert some influence on where the company is heading. Even if you only hold a small bit of stock in the company you have a right to be heard and you can propose motions. Even as a single shareholder you could rally the support of others and get your initiatives passed. This could be anything that you are passionate about. From the direction of the company, their environmental policy, or anything else at all.

3. Learn who the stakeholders are

If you are planning to be an active shareholder, you are going to have to learn a few things along the way. A stakeholder is a person, organization, or group that is somehow involved with the company that you have shares in. This includes creditors, employees, clients, unions, and the local community to name a few.

When you become a shareholder in a company, it is important that you fully understand what each stakeholder needs and how they are ranked in terms of hierarchy. Some or more important than others. You will need to work hard to keep all of the relevant stakeholders top of mind so that you are ready to speak to each of their needs and requirements.

4. Keep a close eye on the board of directors

The relationship between the board of directors and the shareholders should be mutually beneficial. After all, you both want the company to grow and become more and more successful over time.

The board of directors is, of course, made up of shareholders and is elected to the board by the rest of the shareholders. A board’s mandate is to establish policies for corporate management and oversight, making decisions on major company issues.

As a shareholder, if you believe that your board of directors is not acting in your best interests, then you can and should do something about it. After all, they are accountable to all of the shareholders to ensure a bright future for the company.

5. Get involved as a shareholder

As a shareholder, no one is forcing you to attend the meetings. You don’t have to do anything at all if you don’t want to. However, as a shareholder, you could get as involved as you like. You could attend every meeting and enact real change within the organization.

If you are motivated enough, you should feel confident enough to build relationships with other like minded shareholders. You can even consult with a business lawyer and put together a plan of action to get your motions passed.

6. Network as a shareholder

The shareholder meetings can be a great place to meet some top level executives and others who are active in your industry. This is a wonderful networking opportunity that you should make the most of. You will likely be able to forge relationships with like minded people within your industry that could lead to professional and personal advancement.

7. Always be ready to learn something new

You might find that the company that you are a shareholder in makes some surprise changes to the organization and or direction of the company. This might seem a little daunting at first, but big changes like that can be a really great learning opportunity.

After you become a shareholder, you will meet many people from all walks of life. This can lead to some really great insights and perspectives that you would never have realized on your own. The important thing is to keep an open mind and always be ready to make the most of any situation that you find yourself in.